Creating a culture of high performance is a common aspiration for many business executives. Most look to tougher appraisals, forced ranking and highly differentiated pay to increase performance. But do these methods actually improve performance? More importantly, which methods deliver the biggest bang for the buck?
In 2003, the Corporate Executive Board conducted a study to determine
the effectiveness of 105 performance drivers. These included various
types of training (e.g., management development, IT, sales), performance
appraisals, incentives, bonuses and 360-degree feedback. The research
team gathered performance data on 19,000 employees and managers across
34 companies, seven industries and 29 countries to determine what works.
Three general findings stand out:
- Traditional performance management may reduce performance.
- The most effective performance drivers are not incorporated in traditional performance management systems.
- Performance drivers are "remarkably consistent" across workforce segments, industries and countries. In other words, what works here works almost anywhere.
To read the full, original article click on this link: Improving Performance: The Innovators - TheStreet
Author: Brad Hall
